Potential budget compromise still means a large fisc

Posted December 19, 2012 by rvillareal

While both sides have made considerable progress moving towards a compromise, there is still a large chance a compromise will not be reached and we will all go over the cliff January 1 to face a bruising battle over the debt ceiling in late January.  Even if a compromise is reached and a debt ceiling fight is avoided, the fiscal cliff may still amount to about 1% of GDP, a sizeable drag to a slow motion expansion.